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negotiated arrangements agreed to among the parties are being codified.

(b) DEDUCTIBILITY.-Section 114(g) of title 17, United States Code, is amended by adding after paragraph (2) the following: "(3) A nonprofit agent designated to distribute receipts from the licensing of transmissions in accordance with subsection (f) may deduct from any of its receipts, prior to the distribution of such receipts to any person or entity entitled thereto other than copyright owners and performers who have elected to receive royalties from another designated agent and have notified such nonprofit agent in writing of such election, the reasonable costs of such agent incurred after November 1, 1995, in"(A) the administration of the collection, distribution, and calculation of the royalties;

"(B) the settlement of disputes relating to the collection and calculation of the royalties; and

"(C) the licensing and enforcement of rights with respect to the making of ephemeral recordings and performances subject to licensing under section 112 and this section, including those incurred in participating in negotiations or arbitration proceedings under section 112 and this section, except that all costs incurred relating to the section 112 ephemeral recordings right may only be deducted from the royalties received pursuant to section 112.

"(4) Notwithstanding paragraph (3), any designated agent designated to distribute receipts from the licensing of transmissions in accordance with subsection (f) may deduct from any of its receipts, prior to the distribution of such receipts, the reasonable costs identified in paragraph (3) of such agent incurred after November 1, 1995, with respect to such copyright owners and performers who have entered with such agent a contractual relationship that specifies that such costs may be deducted from such royalty receipts.".

(c) DIRECT PAYMENT TO ARTISTS.-Section 114(g)(2) of title 17, United States Code, is amended to read as follows:

"(2) An agent designated to distribute receipts from the licensing of transmissions in accordance with subsection (f) shall distribute such receipts as follows:

"(A) 50 percent of the receipts shall be paid to the copyright owner of the exclusive right under section 106(6) of this title to publicly perform a sound recording by means of a digital audio transmission.

"(B) 22 percent of the receipts shall be deposited in an escrow account managed by an independent administrator jointly appointed by copyright owners of sound recordings and the American Federation of Musicians (or any successor entity) to be distributed to nonfeatured musicians (whether or not members of the American Federation of Musicians) who have performed on sound recordings.

"(C) 22 percent of the receipts shall be deposited in an escrow account managed by an independent administrator jointly appointed by copyright owners of sound recordings and the American Federation of Television and Radio Artists (or any successor entity) to be distributed to nonfeatured vocalists (whether or not members of the

American Federation of Television and Radio Artists) who
have performed on sound recordings.

"(D) 45 percent of the receipts shall be paid, on a
per sound recording basis, to the recording artist or artists
featured on such sound recording (or the persons conveying
rights in the artists' performance in the sound recordings).".

SEC. 6. REPORT TO CONGRESS.

By not later than June 1, 2004, the Comptroller General of the United States, in consultation with the Register of Copyrights, shall conduct and submit to the Committee on the Judiciary of the House of Representatives and the Committee on the Judiciary of the Senate a study concerning the economic arrangements among small commercial webcasters covered by agreements entered into pursuant to section 114(f)(5)(A) of title 17, United States Code, as added by section 4 of this Act, and third parties, and the effect of those arrangements on royalty fees payable on a percentage of revenue or expense basis.

Approved December 4, 2002.

Deadline.

17 USC 114 note.

LEGISLATIVE HISTORY-H.R. 5469:

CONGRESSIONAL RECORD, Vol. 148 (2002):

Oct. 7, considered and passed House.

Nov. 14, considered and passed Senate, amended. House concurred in Senate

amendment.

Dec. 4, 2002 [S. 1010]

Public Law 107-322

107th Congress

An Act

To extend the deadline for commencement of construction of a hydroelectric project in the State of North Carolina.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. EXTENSION OF TIME FOR FEDERAL ENERGY REGU-
LATORY COMMISSION PROJECT.

(a) IN GENERAL.-Notwithstanding the time period specified in section 13 of the Federal Power Act (16 U.S.C. 806) that would otherwise apply to the Federal Energy Regulatory Commission project number 11437, the Commission may, at the request of the licensee for the project, and after reasonable notice, in accordance with the requirements of that section and the Commission's procedures under that section, extend the time period during which the licensee is required to commence the construction of the project for 3 consecutive 2-year periods.

(b) EFFECTIVE DATE.-Subsection (a) takes effect on the date of the expiration of the extension issued by the Commission before the date of the enactment of this Act under section 13 of the Federal Power Act (16 U.S.C. 806).

Approved December 4, 2002.

LEGISLATIVE HISTORY-S. 1010:

SENATE REPORTS: No. 107-192 (Comm. on Energy and Natural Resources).
CONGRESSIONAL RECORD, Vol. 148 (2002):

Aug. 1, considered and passed Senate.
Nov. 14, considered and passed House.

Public Law 107-323

107th Congress

An Act

To require the display of the POW/MIA flag at the World War II Memorial, the
Korean War Veterans Memorial, and the Vietnam Veterans Memorial.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

Dec. 4, 2002 [S. 1226]

POW/MIA
Memorial Flag
Act of 2002.

This Act may be cited as the "POW/MIA Memorial Flag Act 36 USC 101 note.

of 2002".

SEC. 2. DISPLAY OF POW/MIA FLAG AT WORLD WAR II MEMORIAL,
KOREAN WAR MEMORIAL, AND VIETNAM VETERANS MEMO-
RIAL.

(a) REQUIREMENT FOR DISPLAY.-Subsection (d)(3) of section 902 of title 36, United States Code, is amended by striking "The Korean War Veterans Memorial and the Vietnam Veterans Memorial" and inserting "The World War II Memorial, the Korean War Veterans Memorial, and the Vietnam Veterans Memorial".

(b) DAYS FOR DISPLAY.-Subsection (c)(2) of that section is amended

(1) by redesignating subparagraphs (A) and (B) as subparagraphs (B) and (C), respectively; and

(2) by inserting before subparagraph (B), as so redesignated, the following new subparagraph (A):

"(A) in the case of display at the World War II Memorial, Korean War Veterans Memorial, and Vietnam Veterans Memorial (required by subsection (d)(3) of this section), any day on which the United States flag is displayed;".

36 USC 902 note.

(c) DISPLAY ON EXISTING FLAGPOLE.-No element of the United States Government may construe the amendments made by this section as requiring the acquisition of erection of a new or additional flagpole for purposes of the display of the POW/MIA flag. Approved December 4, 2002.

LEGISLATIVE HISTORY-S. 1226:
CONGRESSIONAL RECORD, Vol. 148 (2002):
Oct. 2, considered and passed Senate.
Nov. 14, considered and passed House.

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